China has reportedly pushed back against the European Union’s proposal to restrict hybrid vehicle exports from Chinese automakers, fearing it could escalate into a broader trade conflict. The EU’s suggested cap of 15 percent on hybrid sales was seen as a protective measure amid rising tensions over electric vehicle subsidies and market access. Beijing has signaled it will defend its automakers, raising concerns over retaliatory measures that could disrupt global automotive trade. The standoff highlights deepening divisions between the two economic powers over industrial policies and green technology dominance.


China wants to safeguard Chinese automakers after the EU reportedly requested China limit hybrid vehicle sales to 15 percent to avoid a trade war.